Windows ME Suggestions: Fax Programs and Copying Hard Drive

I'm running Windows ME (I'm trying to hold out til Microsoft rolls out Vista) with USB 1.1. I've read (Walter Mossberg?) that to protect your information you should have two external hard drives. Keep one in a safe deposit box, copy the contents of your computer's internal hard drive to the other and switch the external drives every other month. Any suggestions for specific external hard drives or programs to do the copying?

Also, I have a fax program that came with my computer: Phone Tools by BVRP Software. It only lets me fax one page at a time (two if you count the cover letter). I don't need it that often, but when I do, it's frustrating to have to send out faxes multiple times. Any suggestions for a fax program to replace it; maybe even something better that's available for free online?

I use it at my office to send out to multiple numbers/people with minimal effort.

The main reason I bought it was to give me a way to screen junk faxes. I use to go through a ream of paper a month due to junk faxes.

I have WinFax set to answer on the 2nd ring and my regular old fax machine to answer on the 4th ring (both use same phone line). That way, I can filter out junk faxes and not miss a fax if the computer went down for some reason. It has paid for itself in paper savings alone!